Cava Group (NYSE: CAVA) was a hot stock when it first began trading in June. The excitement around its growth and the potential for the Mediterranean-style restaurant chain to be the next Chipotle Mexican Grill sent investors into a frenzy. On Aug. 2, the stock price reached a high of $58.10 -- 52% higher than the $38.15 it closed at on its first day. But the stock has given back those gains, and as of Monday's close, it hit a new low of $34.13. 

Is this a case of an inflated stock simply coming back down to reality, or is this a business that's in trouble and whose valuation is likely heading further down in value?

According to the consensus analyst price target of nearly $50, the upside for the restaurant stock could be more than 40% from where it trades today. Even the lowest price target of $40 would suggest the stock is a good buy today.

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Source Fool.com